Smith College, Northampton, Mass., adopted a new target asset allocation and outsourced all investment management functions for $915 million in endowment assets to Investure.
The fund changed its hedge fund allocation to 35% from 15%; private securities (other alternative investments) to 25% from 20%; public equities (domestic and international) to 30% from 50%; and domestic fixed income to 10% from 15%, said Ruth Constantine, treasurer and vice president - finance and administration.
Investure is also evaluating managers to run pooled fund vehicles - $100 million in hedge funds and $20 million in private equity, Ms. Constantine said.
Investure's initial evaluation of Smith's existing managers was positive, Ms. Constantine said. Investure will give a full report and make recommendations to Smith's investment committee in May. Reductions to portfolios run by existing managers are more likely than terminations, except for hedge funds of funds, which Ms. Constantine said might gradually be replaced with direct hedge fund investments.
